MKTG 372 exam 2 (100% Correct Answers)

Globalization provides opportunities to increase ______ and decrease _______ on Supply Chain Networks correct answers revenues; costs Success and failure of globalization on a supply chain network are determined by.... correct answers reducing risk in supply chain design with globalization the uncertainty of demand and price drive the... correct answers value of building flexible production capacity 2 reasons *offshoring* fails: correct answers 1. Focusing on *unit cost* rather than *total cost* 2. Ignoring critical risk factors A global supply chain with offshoring increases (3) correct answers 1. the length & duration of info. 2. product 3. cash flows The Offshoring Decision: Total Cost correct answers --The complexity and cost of managing the supply chain can be significantly higher than anticipated --Quantify factors and track them over time Big challenges with offshoring is increased correct answers risk and its potential impact on cost offshoring decisions should be made while accounting for ______ correct answers total cost Key elements of total cost correct answers 1. Supplier price 2. Terms 3. Delivery costs 4. Inventory and warehousing 5. Cost of quality 6. Customer duties, value added-taxes, local tax incentives 7. Cost of risk, procurement staff, broker fees, infrastructure, and tooling and mold costs 8. Exchange rate trends and their impact on cost Offshoring lowers (2) correct answers 1. labor 2. fixed costs Offshoring increases (3) correct answers 1. risk 2. freight costs 3. working capital Before offshoring, product design and process design should be carefully evaluated to identify steps that may lower freight content and the need for working capital. correct answers